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Eneva Agrees Option to Buy Out OGX Gas Venture Under Default

Eneva SA (ENEV3), the Brazilian utility controlled by Germany’s EON SE and Eike Batista, agreed to buy out a natural gas company shared with OGX Petroleo e Gas Participacoes SA if the venture defaults.

Eneva signed an option with OGX Maranhao Petroleo & Gas SA’s three bank creditors to buy 66.7 percent of the shares it doesn’t own in the venture for 200 million reais ($91.5 million), the Rio de Janeiro-based company said in a statement today. Banco Itau BBA SA, Banco Santander SA and Morgan Stanley will have the right, starting on Feb. 19, to sell their shares to Eneva if they execute guarantees on OGX Maranhao, it said.

Eneva is attempting to disentangle itself from the collapse of OGX, Batista’s oil producing company. Dusseldorf-based EON starting buying shares from the former billionaire in January 2012 to gain a foothold in Brazil as domestic profit declined. Eneva is in talks with banks and partners to avoid redemption of the debt owed by OGX Maranhao, three people with knowledge of the talks told Bloomberg News earlier this month.

EON became Eneva’s largest holder on May 29 and increased its stake in a private placement on July 4, three days after OGX said it would probably have to shut its only producing oil field, and Batista was replaced as Eneva chairman. OGX Maranhao, where Eneva has a 33.3 percent stake, operates eight blocks in Brazil’s Parnaiba basin, producing natural gas for the utility’s thermoelectrical plants.

Eneva gained 0.7 percent to 4.37 reais at 11:13 a.m. in Sao Paulo after earlier gaining as much as 2.5 percent, its biggest intraday increase since Oct. 16.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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